Financial Commission bars GANN Markets from its lifeboat scheme
The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has expelled forex brokerage GANN Markets from its membership.
GANN Markets operates as an offshore provider of financial services. The Turkish market-focused broker is not licensed by any financial regulator, and it doesn’t claim any regulatory status in any jurisdiction. The self-regulator explained that the membership status of GANN Markets has ceased following a voluntary withdrawal.
GANN Markets was expelled from the Financial Commission effective April 29, 2022. The move was taken due to failure to adhere to membership rules and after it was given numerous opportunities to rectify its shortfalls.
As such, the commission noted that it will not be able to process any new complaints from GANN Markets clients, following its expulsion from its roster as of the date of this announcement and moving forward, or until membership is approved again.
“Effective April 13th, 2022, GANN Markets were expelled from membership with the Financial Commission due to repeated violations of the membership Rules and Guidelines specific to the payment of membership dues,” the statement reads.
GANN Markets was a member of the Financial Commission. Traders of a company with this membership can be eligible for compensation of up to €20,000 per complaint, as well as having access to all dispute resolution services offered by the Commission. All clients of member companies are protected by the Compensation Fund, which acts as an insurance policy.
FinaCom received a record of 938 complaints in Q1
In cases when complaints are filed against a member firm, the Financial Commission uses a proven method to process complaints and a decision is delivered by the Dispute Resolution Committee (DRC). The Financial Commission cannot process complaints against non-members, and no further action is taken.
The Financial Commission has been actively expanding its list of members in recent months. The expulsion of GANN Markets from membership is an important step as it adds credibility to the Financial Commission and encourages companies that are already members to adhere to the highest standards of operation.
In addition to providing dispute resolution and certification services to the participants of the Forex and derivatives markets, Financial Commission extends its coverage to the crypto community and blockchain startups.
According to its latest annual report, Financial Commission made progress across some of its key business drivers. Specifically, the number of new complaints increased 10 percent year-over-year as compensation sought from broker members rose 57 percent to $2.4 million.
Likewise, Financial-related complaints increased by 40 percent, which indicates a significant rise in disputes related to funds withdrawal. At the same time, complaints listed in the most valuable category ($10K+) jumped 70 percent in 1Q 2022.
